MAJOR American Department Store Closes Its Doors — 10,000 People FIRED

With Americans doing more of their shopping online than ever
before, department stores are taking a hit. Now, one major American
department store is closing its doors, and more than 10,000 people are
feeling the pain as they’ve just been notified of their impending
termination.

Macy’s announced on Wednesday the closure of 68 of the
company’s 730 stores, which will officially shut their doors by the
middle of this year. It is a move that analysts are calling “harsh, but
necessary.” The announcement follows a sharp decline in sales over the
holidays.

The closure of Macy’s locations from Florida to Oregon means a total
of 10,100 jobs will be cut, including “layers of management” in central
operations, according to USA Today. Some of these employees could be transferred to other locations, but most will be forced to find other work.Macy’s said it will shutter its store in downtown Minneapolis opened in 1902, where it has 280 employees.

“We continue to experience declining traffic in our stores
where the majority of our business is still transacted,” said Macy’s CEO
Terry Lindgren. He added, “We are closing locations that are
unproductive or are no longer robust shopping destinations due to
changes in the local retail shopping landscape. … These are never easy
decisions.”

Though the news did not seem to soothe investors, with Macy’s shares plunging 8.7% to $32.70, Neil Saunders, an analyst for Conlumino,
a firm that follows the retail industry, insisted it was the right
move. “In stores where they think they have potential, they will invest
more,” he said. “That is the right direction. They want to make sure the
ones they have are really great stores and that requires money.”

Macy’s announced on Wednesday the closure of 68 stores after a sharp decline in sales during the all-important holiday season.
Saunders added that he doesn’t think “this is the end of” all
closures the retail industry will eventually see from Macy’s as buyers
shift to making more of their purchases over the internet. The retailer
is not alone; Sears and Kmart have also announced the closure of
multiple physical locations.

This news comes at a time when President-elect Donald Trump
is working hard to keep jobs in America and has announced that the two
rules his administration will follow are: Buy American & Hire
American. If anyone can save our declining economy, it’s the billionaire
businessman who turned the political scene on its head this election
season.

MAJOR American Department Store Closes Its Doors — 10,000 People FIRED
Reviewed by Bizpodia
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06:08
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